P56B in workers’ contributions not remitted to SSS

SSS
SSS(Photo by Yans Baroy)

THE Social Security System (SSS) has reported P56 billion in unremitted SSS contributions from delinquent employers in 2023.

But this staggering figure is 39 percent down from the P92 billion in contributions that it failed to collect in 2022, according to the state-run pension fund for private sector employees.

In a statement, SSS president and chief executive officer Rolando Ledesma Macasaet attributed the sharp decline in uncollected contributions to the relentless pursuit of delinquent employers, which included the filing of cases against them in court, and the continuous updating of employer records.

Last year, the SSS received flak after the Commission on Audit called out the pension fund for failing to collect P92.49 billion in premium contributions, penalties and damages from 466,881 delinquent employers.

Macasaet said the SSS filed cases against 2,422 errant employers, most of which chose to settle their delinquencies in full or via installment, resulting in the fund collecting a record-high P1.37 billion in 2023 from P1.15 billion in 2022.

After the Supreme Court upheld the right of the SSS to take legal action against employers remiss in settling their contribution delinquencies, Macasaet said he ordered a more intense Run After Contribution Evaders (Race) Campaign nationwide.

In the past, only selected SSS branch offices conducted Race campaigns, but recently, Macasaet said, he required all SSS branch offices nationwide to carry out the campaign in their respective areas.

“We issued show cause orders or Notices of Violation to delinquent employers and instructed them to report to SSS within 15 days to settle their unpaid contributions and corresponding penalties or face legal consequences for violating RA 11199,” Macasaet said.

Republic Act 11199 is the Social Security Act of 2018.

Macasaet said the SSS conducted 587 Race operations nationwide last year and issued written notices to 4,923 delinquent employers.

Last March, the SSS said, the Supreme Court (SC) rejected an appeal filed by real estate firm RGV Real Estate Center Inc. over a lower court ruling that it had failed to remit employee contributions to the SSS on time.

The SSS said it had issued demand letters seeking the payment of over P3 million in employee contributions, and that the Social Security Commission, which first heard the case subsequently found RGV liable to pay nearly P7.5 million in unpaid contributions, interest and penalties for late remittance. / CTL

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